Thai major plastic packaging and recycling company Indorama Ventures has said that it would expect the PET prices to rise over the coming months.
In announcing net profit of 380 million Thai Baht (£9 million) for the third quarter of its 2020 financial year, it revealed that the Covid pandemic had hit sales across its business, but that sales across its PET & Packaging business had grown by 4%.
It noted in its results that PET benchmark spreads improved with demand but had lowered in western countries it operates in due to “a steep decline in crude oil prices and raw material margins”.
However, it added in its results statement that it expected prices to rise: “In line with improved crude oil price outlook and strong PET demand, we expect to have an improved import parity price to the west and expect to recover lost premiums in Europe and Americas.”
Indorama Ventures plans to create 750,000 tonnes of rPET capacity by 2025 and to become the leader in recycled PET to complement its existing virgin PET business.
It recently completed the acquisition of a PET recycling facility in Poland and another in Brazil.